The Washington D.C. metropolitan area real estate market is showing remarkable resilience and recovery as we move deeper into 2025. Our latest analysis of Montgomery County, Maryland and Washington D.C. market data reveals encouraging trends for both buyers and sellers in June 2025.
Executive Summary: Market Rebounds After Spring Slowdown
Both Montgomery County and Washington D.C. experienced significant market improvements from May to June 2025, with sales volumes rebounding and prices continuing their upward trajectory. Here’s what the numbers tell us about the current state of the DMV real estate market.
Montgomery County, MD Real Estate Market Analysis
Home Prices Continue Steady Climb
Montgomery County’s average home sale price reached $827,092 in June 2025, representing a healthy 2% increase year-over-year. This follows May’s average of $805,716, showing consistent month-over-month appreciation of 2.7%.
Key Takeaway for Buyers: While prices are rising, the growth rate remains manageable compared to the dramatic increases seen in recent years.
Key Takeaway for Sellers: Home values in Montgomery County continue to appreciate steadily, providing confidence for those considering listing their property.
Sales Volume Rebounds Strongly
After a challenging May with 928 properties sold (down 11% year-over-year), Montgomery County saw a remarkable turnaround in June with 1,000 properties sold, marking a 3% increase compared to June 2024. This represents a robust 7.8% month-over-month improvement.
Market Timing: Days on Market Remain Low
Properties in Montgomery County are selling within an average of 21 days in June 2025, just one day longer than May’s 20 days. While this represents a 17% increase compared to June 2024, homes are still moving relatively quickly in this competitive market.
Inventory Levels Improving for Buyers
One of the most significant developments is the substantial increase in available inventory. Active listings jumped to 2,232 properties in June, representing a 60% increase year-over-year. New listings totaled 1,429 in June, up 21% from the previous year.
Washington D.C. Real Estate Market Analysis
Premium Pricing Continues in Nation’s Capital
Washington D.C. maintains its position as the premium market with an average sales price of $976,066 in June 2025, showing strong 5% year-over-year growth. This represents an 18% premium over Montgomery County prices.
Urban Market Shows Seasonal Recovery
Like Montgomery County, D.C. rebounded from a slower May (564 sales, down 18% year-over-year) to a positive June with 607 properties sold, representing 3% growth compared to June 2024.
Extended Marketing Periods in City Market
D.C. properties are taking longer to sell, with an average of 43 days on market in June 2025. This 22% increase year-over-year suggests buyers in the urban market are being more selective.
Inventory Growth More Moderate
Washington D.C. shows more moderate inventory growth with 3,246 active listings in June (up 16% year-over-year) and 1,211 new listings (up 7% year-over-year).
Market Trends and Insights for 2025
What This Means for Home Buyers
- More Choices Available: Both markets show significant increases in inventory, giving buyers more options
- Take Your Time: Extended days on market indicate less pressure for immediate decisions
- Seasonal Opportunity: June’s recovery suggests summer may offer good buying opportunities
- Price Appreciation Continues: While inventory is increasing, prices are still rising in both markets
What This Means for Home Sellers
- Market Remains Strong: Consistent price appreciation and sales volume recovery indicate healthy demand
- Pricing Strategy Important: With more inventory available, competitive pricing becomes crucial
- Time to Market Matters: Properties are taking slightly longer to sell, so proper preparation is key
- Seasonal Timing: June’s recovery suggests summer remains a strong selling season
Montgomery County vs. Washington D.C.: Which Market is Right for You?
Choose Montgomery County If:
- You want faster sales (21 days vs. 43 days average)
- You prefer higher transaction volumes and more market activity
- You’re seeking value with steady appreciation
- You want access to excellent schools and suburban amenities
Choose Washington D.C. If:
- You’re comfortable with premium pricing for urban lifestyle
- You value walkability and city amenities
- You’re investing in a market with strong appreciation (5% vs. 2% year-over-year)
- You’re not in a rush to buy or sell (longer marketing periods)
Looking Ahead: Market Predictions for Late 2025
Based on current trends, we anticipate:
- Continued inventory normalization as more sellers enter the market
- Sustained price appreciation though potentially at a more moderate pace
- Seasonal patterns to continue with summer maintaining strong activity
- Buyer market emergence as inventory levels continue to improve
Expert Recommendations
For Buyers:
- Take advantage of increased inventory to be selective
- Consider both markets as each offers distinct advantages
- Don’t wait for dramatic price drops – appreciation continues
- Work with experienced local agents who understand micro-market conditions
For Sellers:
- Price competitively given increased inventory
- Ensure proper home preparation and staging
- Consider timing strategies for optimal market conditions
- Market aggressively to stand out among increased competition
Conclusion: A Balanced Market Emerges
The June 2025 data shows both Montgomery County and Washington D.C. transitioning from the extremely tight inventory conditions of 2024 to a more balanced market that benefits both buyers and sellers. While prices continue to appreciate, the increased inventory provides more opportunities for buyers, and the sustained demand supports seller confidence.
Whether you’re looking to buy or sell in Montgomery County or Washington D.C., the current market conditions offer opportunities for those who understand the trends and work with knowledgeable professionals.
